Federalist Policies

Federalist Policies

Length: 1121 words (3.2 double-spaced pages)

Rating: Excellent

Open Document

Essay Preview

More ↓
Federalist Policies

After the establishment of the constitution, the Federalist administrations faces many significant challenges when dealing with the economics of the United States; much of the country was divided over issues such as how to raise money, establishing a public credit system, how to pay the national debt, and whether or not a national bank should be established. Leaders like Alexander Hamilton, Thomas Jefferson, and James Madison came to represent the ideas of the people and as these ideas became more solid, debate and opposition rose. The Federalists saw multiple ways to resolve these issues, and the resolutions established that leadership in the United States would be successful.
Raising revenue for the United States was the first economic issue the Federalists faced. This was the first and most important need they saw for the country. At first, James Madison proposed a small tax on imports, however, the high demand for money quickly increased the taxation. Also, the Tonnage Act of 1789 was passed, taxing American and foreign ships. American ships were not taxed as much as foreign ships, however. The issues of taxation and raising money also brought into play bigger issues, such as whether the United States should favor Britain or France in their economic policies, whether they should maintain taxation even at the expense of farmers, and whether the interests of northern manufacturers should be their biggest concern. The Tonnage Act was the beginning of increased revenue in the America, but a sound fiscal discipline was far from having been created.

Another issue that was controversial was the establishment of a public credit system and paying the national debt. Alexander Hamilton was the main activist in this issue. He wrote several reports to the House of Representatives offering solutions to the problem. In his first report, he suggested that citizens who had government bonds should be able to turn them in for new, interest-bearing bond. He also thought that the government should make the states pay their debt to the government, which would be about $21 million. The problem with his ideas was that, in financial crisis, many farmers had sold their bonds at very low prices to speculators, and that with this plan, only the speculators would benefit, because they could trade in all of the bonds they bought very cheaply. The citizens argued that the they should be they should be paid back for their losses.

How to Cite this Page

MLA Citation:
"Federalist Policies." 123HelpMe.com. 16 Aug 2018

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

The Federalist No.'s 10 and 51 Essay

- The Federalist No.'s 10 and 51 The Federalist, No. 10, by James Madison is a clear expression of views and policies for a new government. Madison was a strong supporter and member of the Federalists whose main beliefs favored the Constitution. They also believed that the Articles of Confederation needed to be rewritten so that a new central government would control the power of the states. Madison differentiates between a Democracy and a Republic and later on decides on a Republic as his choice of government....   [tags: Papers]

Free Essays
433 words (1.2 pages)

The American Empire: Exceptionalist Political, Economic, and Public Policies

- ... The persevering characteristics are a division of forces, federalism, and manifestations of judicial review connected with an unequivocal Bill of Rights. Separation of powers: The separation of powers alludes, regardless, to the work in the definitive record of legislative, executive, and judicial capacities to different institutions, independently constituted. These organizations are needed by the rules set down in the document to share policymaking, and in this way are ceaselessly commonly responsible, each to the others....   [tags: imitate, freedom, world, policies]

Research Papers
1440 words (4.1 pages)

The New Federalist Party Essay

- The New Federalist Party Part I As the sole member of the New Federalist party, it is with great honors that I now present to you the very first New Federalist platform. PREAMBLE The growing dissension between the two major political parties today has drawn them away from the public's views. It has been determined that the citizens of the United States cannot get what they want from the current major parties. Because of this, a total reconstruction of the current political structure is in dire need....   [tags: essays research papers]

Free Essays
3039 words (8.7 pages)

Foreign Policy in the Federalist Era Essay

- When the wave of American Revolution was going on around Europe and around the world, the Federalists split into two factions over their contrasting vision about the programs to guide the new republic. Due to this, the foreign policies of the United States had to face several critiques from its own citizens during the Federalist Era (1789-1801). The foreign affairs of the Federalist Era was shaped by the French Revolution and other subsequent war between British and France. Clearly, the ideological differences between the prominent political leaders divided the American into two factions....   [tags: post American Revolution wave in Europe]

Research Papers
534 words (1.5 pages)

Illegal Immigration and the Federalist System Essay

- Illegal Immigration and the Federalist System The influx of illegal immigrants into the United States affects every level of government in a significant way. Although the actual effects of illegal immigration are hotly debated, it remains the government's difficult duty to balance the massive amounts of data and diversity of public opinion in order to best accommodate the overall will of its people. In recent times we have witnessed a vast disconnect between what constituents want for their state versus what the nation as a whole considers Constitutionally justifiable....   [tags: Immigration ]

Research Papers
1295 words (3.7 pages)

Essay on Federalist #10

- Madison begins perhaps the most famous of the Federalist papers by stating that one of the strongest arguments in favor of the Constitution is the fact that it establishes a government capable of controlling the violence and damage caused by factions. Madison defines that factions are groups of people who gather together to protect and promote their special economic interests and political opinions. Although these factions are at odds with each other, they frequently work against the public interests, and infringe upon the rights of others....   [tags: essays research papers]

Free Essays
935 words (2.7 pages)

Jefferson's Actions During His Presidency Essay

- ... He would try to lower the Federalists control as well power and give equality. Jefferson would try to help the common man especially the yeoman farmer as well as reducing the debt the United States had. Jefferson did keep his word to have a “Republican Revolution” by helping the average farmer as he made the Louisiana Purchase. The Louisiana Purchase was a purchase Jefferson made to buy the land from Napoleon because Napoleon being at war saw the land useless to defend. Desperate to get rid of the land, Napoleon offered the whole land at an inexpensive price; Jefferson aware of a low price for a substantial amount of land did not hesitate to buy the terrain....   [tags: debt, federalist, republican revolution]

Research Papers
710 words (2 pages)

United States Government and Federalism Essay

- Over the last two centuries the United States has grappled with the idea of federalism. While former President James Madison had a very concrete understanding of that form of governance, “In the compound republic of America, the power surrendered by the people is first divided between two distinct governments, and then portion allotted to each subdivided among distinct and separate departments” (Madison, 1788, p. 67), the United States has never had a conclusive division of power between the state and the US Federal Governments....   [tags: Federalism, Division of Power]

Research Papers
1462 words (4.2 pages)

How Was the Threat of War with France during John Adams’ Presidency Used by the Federalist party to Attack the Republicans?

- A. Plan of the Investigation This study investigates how was the threat of war with France during John Adams’ presidency used by the Federalist party to attack the Republicans. It will look at the “Quasi-War’s” effects on the political attitudes of the time as well as legislation passed by John Adams and Congress. Specifically, the XYZ affair will be discussed as an example of the tense relations between the countries and a catalyst for the Federalist support used to gain an upper hand over the Republicans, and the Alien and Sedition Acts will be examined as an example of Federalist legislation passed against the Republicans....   [tags: American History, France, John Adams]

Research Papers
1500 words (4.3 pages)

Federalists Essays

- The early years of the Constitution of the United States were full of political strife. The two prominent political ideals were complete opposites. The Jeffersonian Republicans were focused on giving power to the people and maintaining a pastoral economy, while the Federalists supported the control of the government by the elite class, and maintaining “positive” democracy. Both parties feared the influence and effect the other party would have on the public. In Linda K. Kerber's article, “The Fears of the Federalists”, the major concerns Federalists held in the early 19th century are described....   [tags: U.S. Politics ]

Research Papers
1009 words (2.9 pages)

Related Searches

Hamilton, however, argued that the speculators bought the bonds legally and, therefore, fairly, so they should that shouldn't be an issue. In later reports, Hamilton also suggested that the government tax liquor in order to raise money to pay the national debt, and that the government should establish financial aid programs to encourage the development of manufacturing businesses. He also proposed the establishment of a national bank and a national mint. He believed that these things were all necessary to pay the national debt, and that paying this debt should be a high priority, because it would show that the United States is honorable, has sound finances, and it would ensure the nations chances for credit in later years. Hamilton's ideas raised a lot of questions, and although few questioned whether or not paying the national debt was necessary and would be beneficial, there was much argument over his ideas, especially the establishment of a national bank.

The payment of the national debt was controversial, especially between Hamilton and James Madison. Madison did not argue that the debt should not be paid; he agreed with Hamilton that the payment of the debt was very important. However, he disagreed with Hamilton about the bonds, because he sided with the public in believing that only speculators would benefit from this plan. Regarding the states paying off their debt, he believed that many of the states had already made progress is repaying their debt, and that they should only be held accountable for paying their debt as it stood in 1783, when peace was resolved. Hamilton, Jefferson, and Madison all discussed the national debt and finally came to a conclusion. Madison's idea was finally passed and it was agreed that small states who were unable to pay off their debts would get grants from the Federal Government to make up the difference. This compromise showed that the leaders of the nations did have the interest of the people and the states in mind.

Once the issues of raising revenue, establishing public credit, and repaying the national debt were resolved, the main disagreement became over the national bank. Hamilton proposed the national bank with many reasons in mind. He thought that a national bank should be established which would issue bank notes, or paper money, which would establish a uniform currency. He thought that the bank should be under government watch, but should also have private investors provide four-fifths of the capital. He also felt that once a national bank was established along with paper money, the bank could issue loans to encourage business. A national bank, he also believed, would be a safe place to store money large amounts of money. The big dispute over the national bank were whether the government was given the right to establish one in the constitution. Hamilton and Madison strongly opposed each other on this issue. Hamilton, believing that the establishment of a national bank was constitutional, argued that Article I, Section I allowed them to establish one. This Section states that congress can make any law that is "necessary and proper" for the nation. The debate over this was whether or not a national bank was necessary. Hamilton argues why the national bank is necessary and proper, while Madison argues that it is not. Madison's other main argument is that the Constitution also leaves any powers that are not specifically directed to the federal government are to be given to either the states or the people. Therefore, since a national bank was not specifically given to federal power, it should be left to either the states or the people. The president accepted Hamilton's arguments, however, and approved a national bank. The bank's stock was put up for sale on July 4, 1791, and was sold out within a few hours. The decision to approve the national bank almost immediately proved itself to be advantageous.

The Federalists had many challenges they had to deal with, almost immediately after the establishment of the Constitution. Economically, the country wasn't in a very stable position. Alexander Hamilton played a huge role in establishing the economy of the United States. The national bank, which has helped the nation prosper, is also attributed to him. Without these ideas, the United States economy wouldn't be the sound fiscal discipline that it is today.
Return to 123HelpMe.com